Cash Factors & Finance

Case Studies

Case Study 1:

Invoice Discounting

Faster Freight are transport operators holding significant contracts with a national carrier. Transport is a capital intensive business and when the engine blew on a key vehicle the repair costs were very high and had to be met urgently.

What to do? The bank wanted a valuation on properties prior to issuing a second mortgage and advancing funds. Commercial Factors & Finance was able to advance 90% of a selected invoice within 24 hours, with the balance, less fees, paid out once payment was received from the debtor. This was a one off transaction, no long term commitments required. Simple, no fuss, paperwork with full disclosure.

The Commercial Factors & Finance solution.

  1. Faster Freight had raised an invoice for work completed.
  2. We liaised with the client and ensured the due payment would be paid in full and on time.
  3. Commercial Factors & Finance purchased this invoice from Faster Freight paying 90% of the invoice value immediately.
  4. When due, the client paid directly to a nominated account held by Commercial Factors & Finance.
  5. When payment was received we released the 10% owing, less our fees, to Faster Freight.

Case Study 2:

Full Service Factoring

Plastic bag manufacturing involves low margin, high volume production. Cost control was essential. Pete's Plastics are a small but rapidly growing business. Pete gets up early to do a production run in the morning, afternoons were spent on the road talking to existing and prospective customers, the evenings involved processing orders and managing debtors etc.

Pete needed help. He knew he could obtain better deals from his suppliers by making early payment and his pet hate was calling customers to chase money that was overdue.

The Commercial Factors & Finance solution.

  1. Pete provided the goods to his customers and invoiced them.
  2. He sent the invoice to us.
  3. We made available 90% of the value of eligible invoices, less our fees, within 24 hours.
  4. We carried out the debtor management and adminstration procedures.
  5. Debtors paid directly to a nominated account held by Commercial Factors & Finance.
  6. When payment was received we released the retention amount on the 15th of the month following.

Case Study 3:

Stock Funding & Factoring Facility

AutoSpares are importers and distributors of car parts. Despite good margins, cash was always tight. Overseas suppliers expected payment up front, by the time the product arrived and was sold and paid for, the mortgage facility was always at its limit meaning opportunities for sales growth were difficult.

The Commercial Factors & Finance solution.

  1. AutoSpares negotiated to buy goods from its USA suppliers.
  2. We paid the supplier on their behalf and took ownership of the goods.
  3. AutoSpares sold the stock and created invoices.
  4. The invoices were sent to Commercial Factors & Finance.
  5. We made available 90% of the value of eligible invoices, less our factor fees and less costs & fees associated with the stock purchase, all within 24 hours.
  6. We carried out the debtor management and administration procedures.
  7. Debtors paid directly into a nominated account held by Commercial Factors & Finance.
  8. When the customer paid, we made available the retention amount on the 15th of the month following.

Case Study 4:

Debtor Management & Factoring

Andrew Walker is a sole practice solicitor working from a home office. Andrew has a very successful operation and is in the fortunate position of turning business down in order to maintain the lifestyle he desires.

Andrew's only concern was that his clients were continually slow to make payment, and he didn't want to follow them up himself nor did he want to spend additional time preparing statements and reconciliations etc.

The Commercial Factors & Finance solution.

  1. Andrew continued to provide services to his clients and processed invoices accordingly.
  2. He sent the invoices to us in weekly batches.
  3. We made available 90% of the value of eligible invoices, less our fees, within 24 hours.
  4. We carried out the debtor management and administration procedures, including issuing statements, calling late payers, preparing any necessary reconciliations and providing copy invoices etc.
  5. Debtors paid directly to a nominated account held by Commercial Factors & Finance.
  6. When payment was received we released the retention amount on the 15th of the month following.